I’m not sure if you are aware of this, but when you look into your order history Amazon currently tells you whether or not tax collected was as a Marketplace Facilitator and who the responsible party is for remitting tax.

You can see this under “More details” about an order. I attached an image from an order we recently shipped to the state of Washington that was a regular FBM order.

You can check the order history for any orders sent to your state to see whether or not Amazon collected as a Marketplace Facilitator.

Even if Amazon collected, this should not be construed to mean that you would not have to file sales tax returns in your own state.

Amazon collects sales tax in Md. now, because they have a fulfillment center there. However, our business has been located in Md. for 40 years. Amazon still collects Md. sales tax on our instate sales, and gives it to us to pay. Are you licensed to collect sales tax in your state?

It looks like they collected and paid it to me instead of paying on my behalf.

I agree with you completely, and understood this to be the case until I read a report that said there was a change to the Marketplace Facilitator Tax service, and funds were no longer being given to the seller, but would be handled by the platform.

Then, Amazon changed the service from Marketplace Facilitator Tax to Marketplace Tax Collection and changed the wording.

My state is not one among those that has entered into any sort of Marketplace Facilitator agreement with Amazon, so your post is extremely important for all us. If you get any further explanation, please come back and update us.

Where and when will Amazon automatically calculate, collect, and remit sales tax?
Based on applicable state tax regulation, Amazon will begin calculating, collecting, and remitting sales tax on behalf of sellers for orders shipped to customers in the following states on the effective date.

I think the Maryland seller is confused about Amazon collecting tax in MD for purchases made from 3rd party sellers. It sounds as though he has Amazon collect sales tax for him and he remits that sales tax to his home state because he has a physical presence there and a seller’s permit. Amazon is now collecting/remitting sales tax in all States that collect sales tax revenue for purchases made directly from Amazon (not 3rd party sellers) ~ but this is not Marketplace Facilitator sales tax collecting & remitting.

The list above posted by @JwsMarket is the current list of states that have enacted Marketplace Facilitator laws and Amazon is collecting/remitting sales tax for all purchases made on Amazon even those by 3rd party sellers.

Currently there are bills introduced in at least 9 other states (and the list should grow in 2019) for sales tax collection on behalf of 3rd party sellers who sell on Marketplaces.

South Carolina is missing from that list. So happens to be where I am located. The thing I find most interesting is the person at the DOR for my state who knew about the facilitator law apparently did not know AMZ would not remit for us even though the she gave us the correct way to list the remittance on our sales tax forms. I am going to continue paying each month as I have always done I would strongly suggest those of you in facilitator states pay close attention and make sure who is paying the tax bill as the DOR will not knock on AMZ’s door for non paid sales tax that you owe.

Reading South Carolina’s S.214 which addresses marketplace facilitator sales tax collection and remittance for 3rd Party Sellers, it passed the SC Senate on 3/13/2019. It does not appear that the Governor has signed it into law. I would assume when signed it would become “law” and the various marketplaces would be notified to let them know that they should begin collecting and remitting sales tax on behalf of their 3rd party sellers shipping goods into SC:

AS PASSED BY THE SENATEMarch 13, 2019S. 214SECTION 7. This act takes effect upon approval by the Governor.

We were listed to begin the market place facilitator collection on Feb.1st 2019.

I remember you mentioning this in another thread yesterday. Since any URL-specific mention that I make of that thread will publicly link it to this thread, and I suspect there may be some reluctance on your part to show too much of your hand, I will refrain from following my typical procedure of posting the link to that thread.

Still, my entire purpose in following that typical procedure of posting links to other threads is my oft-expressed desire to pay forward at least some of the incalculable debt which I am convinced that I myself owe to our Seller Community thanks to the actionable knowledge that we ourselves (i.e., my family’s business enterprises) gained from things I’ve learned from the various Amazon Seller Forums over the years,

In order that future readers might find a more-clear path to knowledge that they seek, and given my professed determination to ease access to that path wherever and whenever I can*, may I ask if the second sentence of your post - “…It was listed on AMZ in a list with the rest of the states.Now I see it looks like it was removed.” indicates that you actually saw with your own eyes that a tenth state (your own) was added to the list Amazon maintains in the Seller Help Content’s Marketplace Tax Collection FAQ (link)?

Asterisk

Anything posted in these publicly-available fora - including links to a post made by a fellow Seller Community member - that I have solidly-founded reasons to believe might help answer a question another member asks might well be recorded by me, and passed on in the future by yours truly.

South Dakota For all sales destined to this state, Amazon manages sales and use tax.

Yes, it does. I would submit that the fact that this became so on the first of this month (1March2019) is a pretty clear indication that - despite your Great State of South Dakota proving victorious in last year’s Wayfair decision handed down by SCOTUS - the Marketplace Facilitator model is the most-attractive that’s currently available for states to try leveling the playing field for both B&M & eCommerce retailers; SD could have followed the path that Justice Kennedy’s Majority Opinion laid out as being constitutional, and simply (a relative term here) placed the burden on individual sellers that met its prescribed threshold.

South Carolina, OTOH, has its eggs in another basket (the 5th of the so-called “Kill-Quill models” that various states are pursuing); a lower-court decision is looming close at hand, and that decision could ultimately upset all baskets.

The fact that so few of us in the Amazon Seller Community seem to have realized that the agreement that Amazon has reached with SD by assuming Marketplace Facilitator obligations for sales to that state as of 1Mar2019 constitutes nothing less than a sea change surprises me - but the fact that such an agreement with SD exists at all is undeniably a potential portent of clearer sailing lying just ahead, whether Congress takes up its duty to act or not.

Livingin the state of Washington and being a provider ( I don’t sell products) Amazon was supposed to start collecting the sales tax on my service on January 2018 and remit it to the DOR (Dept of Revenue) whenever. Except Amz made a boo-boo and didn’t start the collection until May 1,2018. Up until that point, I had to collect and remit the tax to Wa DOR on my qtrly payment. So, I don’t know squat about selling products on Amz (heck, I don’t even buy off Amz) sio I’d keep an eye on a few orders and see what your next statement shows.

Amazon collects sales tax in Md. now, because they have a fulfillment center there. However, our business has been located in Md. for 40 years. Amazon still collects Md. sales tax on our instate sales, and gives it to us to pay. Are you licensed to collect sales tax in your state?

That’s because Maryland is not a Marketplace Facilitator state (yet). If in the future if they become one Amazon will collect sales tax for all sales into the state from all sellers AND stop remitting it to you.

I’m curious what they felt the need to put that foot note in there for Minnesota. AFAIK that statement is true for every state on this list?

So far I am not affected by this but I know it’s coming.

Having said that, as far as I can determine from reading a LOT of discussions on this what you are saying is NOT true.

From what I have read, if you are in a state affected so far, Amazon will now collect for OUT OF STATE sellers, but the people who are domiciled IN those states are still responsible for the collection and payment of their sales taxes.

Hopefully, a seller from PA, WA or wherever can chime in and let us both know for sure.

If I’m correct, it would explain the note on MN. If not, then it’s just typical Amazon “let’s confuse people even more” stuff.

Also, go back and read what SELLC said when they replied to you a bit ago. They are still collecting and remitting for their state.

Having said that, as far as I can determine from reading a LOT of discussions on this what you are saying is NOT true.

From what I have read, if you are in a state affected so far, Amazon will now collect for OUT OF STATE sellers, but the people who are domiciled IN those states are still responsible for the collection and payment of their sales taxes.

Hmm, I haven’t come across that. I admit Amazon’s FAQ doesn’t specifically say either way and the answer to this question while starting with a “No”, it then backs away from that answer with “where Amazon automatically calculated and collected sales tax”.

Do I need to remit sales tax to states with automatic Marketplace Tax Collection?
No, you do not need to remit sales tax to states where Amazon automatically calculated and collected sales tax on your orders. If you have remitted sales tax from your Amazon orders to a state with automatic Marketplace Tax Collection, you will need to work with you professional tax advisor and/or state to determine your refund options.

dwat70:

Hopefully, a seller from PA, WA or wherever can chime in and let us both know for sure.

I am a seller in the state of WA and Amazon took over remittance on 1/1/2018. I admit I haven’t dug into the 8 or so state laws to see if any are differentiating the application of Marketplace Facilitator based on where the seller is located but I would think that would be a poor idea.

dwat70:

Also, go back and read what SELLC said when they replied to you a bit ago. They are still collecting and remitting for their state.

SELLC is in MD and they are not a Marketplace Facilitator state and as such they are not collecting and remitting it for third party sellers so it makes sense that they would still have to remit it themselves.

Oh, here is the answer to my question. Minnesota’s law has various exceptions where it’s apparently not required that the Marketplace remit the sales tax but Amazon has decided to collect and remit it for everyone.

When is a Marketplace Provider required to collect and remit sales tax on behalf of remote sellers using their marketplace?
A Marketplace Provider must collect and remit Minnesota sales tax on all taxable sales into Minnesota made by a remote seller through the marketplace unless any of the following are true:

The remote seller makes taxable retail sales into Minnesota through the marketplace of less than $10,000 in a 12-month period ending on the most recently completed calendar quarter.

The remote seller elects to register and collect Minnesota sales tax directly and does not enter into an agreement with the Marketplace Provider for the marketplace to collect and remit Minnesota sales tax on behalf of the remote seller.

The Marketplace Provider does not maintain a place of business in Minnesota.

When is a Marketplace Provider required to collect and remit sales tax on behalf of a Minnesota seller using their marketplace?
A seller physically present in Minnesota should already be collecting and remitting Minnesota sales tax on all taxable sales into Minnesota including sales made by the seller through a marketplace.

Minnesota sellers should continue to collect and remit unless the Minnesota seller enters into an agreement with the Marketplace Provider for the marketplace to collect and remit Minnesota sales tax on behalf of the Minnesota seller.